Analyst Owen Rickert of Northland Securities maintained a Hold rating on Quest Resource, reducing the price target to $2.25.
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Owen Rickert has given his Hold rating due to a combination of factors influencing Quest Resource’s current financial and operational landscape. The company’s recent quarterly results have shown positive signs, with revenue, gross margin, and adjusted EBITDA surpassing expectations. This improvement is attributed to the Operational Excellence initiatives that have started to deliver tangible benefits, such as cost reductions and stronger cash generation.
Despite these advancements, Rickert notes that Quest Resource still faces challenges, particularly in the broader macroeconomic environment, which affects decision-making cycles among potential clients. The company is making strategic efforts to diversify its customer base and reduce reliance on the industrial segment by targeting growth in retail, hospitality, and grocery sectors. While these efforts are promising, the ongoing macroeconomic headwinds and the need for further operational improvements justify the Hold rating, as the company continues to work on strengthening its execution and expanding its margins.
In another report released on October 31, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $1.50 price target.
Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of QRHC in relation to earlier this year.